Stockholm (AP) – Top Trade Officer from China And the US began new talks on Monday to ease tensions. Customs Between the two largest national economies in the world.
US Treasury Secretary Scott Bescent and China’s Deputy Prime Minister LIFENG had met in the Swedish Prime Minister’s office for two days of consultation.
However, after blinkmanship earlier this year, other possible results will be scrutinized by the market and companies for signs of settlement.
Analysts say consultations can set the stage for possible meetings between the US presidents Donald Trump Chinese President Xi Jinping will be held later this year.
Other issues on the agenda include access to the Chinese market by American companies. Investing in China in the US. A component of fentanyl made in China that reaches US consumers. Buying Russian and Iranian oil in China. American Steps to Limit the Export of Western Technology – Chips and more useful for the power of artificial intelligence systems.
The talks ended almost five hours after Monday and were scheduled to be reconvened Tuesday morning.
“A big, confident partner”
Wendy Cutler, a former US trade negotiator and now vice president of the Asian Association Policy Institute, said Trump’s team will face challenges from “a large, confident partner willing to retaliate against American interests.”
Rolling over tariff fees “should be a simple part,” she said.
“Beijing is more prepared and at least argues for US technology export control moves. It’s a tough question for Washington,” she said, adding that there will be a lot of conversations leading up to the Xi-Trump Summit.
“Success is not guaranteed,” Cutler said. “There are a number of trip wires that can throw wrenches into this preparation process.”
US-China trade talks are the third of this year, almost four months after Trump disrupted global trade with him. Sweep fee proposalIncludes import taxes that have reached up to 145% on Chinese goods. China retaliated Tariffs reached 125% on US goods, sending global financial markets to temporary tailspin.
Extends the 90-day suspension
The Stockholm Conference is set to extend the 90-day suspension on these tariffs, following similar talks in Geneva and London. During the hiatus, US tariffs were reduced to 30% for Chinese products, and China set a 10% tariff on US products.
The Trump administration is just finished Handling tariffs with the European Unionand wants to cut the trade deficit of $904 billion over the past year. This includes a trade deficit of nearly $300 billion with China.
China’s Commerce Ministry said last week it would raise common concerns through the principles of “mutual respect, peaceful coexistence and cooperation that is beneficial to both parties.”
The talks with Beijing are part of a gust of US trade negotiations caused by the “liberation day” tariffs that twist the arm of Trump. Dozens of countries. Since then, several lectures have begun fruit when reaching the deal. Others don’t have it.
Without an extension by August 12th, we could have returned to the triple digit levels seen before the 90-day suspension reached Geneva. Many other countries, including several developing countries that rely on exports to the US, face a deadline on Friday.
Critics say Trump’s tariffs will be punished by Americans by forcing American importers to pay or to hand them over to consumers at a higher price.
Stability proposal
“We have a range of business with China,” Trump told reporters on Friday. Just two days after Bescent told MSNBC that “current status” had reached between the two sides.
While the Chinese side has provided little guidance on the details of its purpose in Stockholm, Bescent suggests that the situation is stable to the point where China and the US can look to the long-term balance between their economy.
For years, since China was pushed into the global trading system about 20 years ago, the US has promoted Beijing leaders to encourage more consumption in China and compete for access to foreign-made markets, including the United States.
Other points of attachment in the relationship include China’s overpower, the world’s largest manufacturer, and concerns about whether Beijing is doing enough to control the chemicals used to manufacture fentanyl, analysts say.
In Stockholm, the Chinese are probably 20% fentanyl-related tariffs Trump imposed it earlier this year, said Sang Yun, director of the China program at Washington-based Stimson Center.
Looks long term
Experts say long-term progress in US-China trade relations depends on structural changes.
These include the rise in production in the US, part of Trump’s ambitions. On the Chinese side, it could involve an excessive reduction in Chinese production in many industries, such as electric vehicles and steel, and an increase in China’s consumer spending to facilitate imbalances in China’s export-driven economy.
Sean Stein, chairman of the US-China Business Council, said the Stockholm consultations provide an opportunity for the two governments to address the issue of structural reform. Companies will see clues about the potential Trump XI summit. He said that because real deals depend on meetings between pairs.
Transactions are possible because “many of what the US wants and the Chinese also want.”
For example, China is interested in purchasing US soybeans, aircraft and parts, while Chinese companies are interested in investing in US manufacturing.
Bescent also said that Stockholm’s speech could address Chinese purchases of Russian and Iranian oil.
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Diddy Tan and Josh Bork of Washington and Ken Moritug of Beijing contributed to this report.
